2013 : W H A T W E L E A R N E D F E A T U R E
in all three states and a B2C launch in
New Jersey. Against the backdrop of
a shrinking overall poker market, the
operator’s strategy of focusing on the
recreational player also saw it leapfrog
Full Tilt in PokerScout’s online cash game
traffic rankings for the first time.
The operator’s progress was recognised
in style at the 2013 eGR Operator Awards
where the company scooped three prizes
including the coveted Operator of the Year
award. It also took home the top awards in
the poker and casino categories.
Over the course of the year 888 has
achieved success in regulated markets,
most notably in Spain. Its casino and
poker products have seen it gain around
20% market share.
Growth continued throughout the year
and in its most recent financial results,
casino posted a 19% year-on-year increase
in revenues and poker revenues stayed
steady in an increasingly tough and
declining market with a 0.4% revenue rise.
WHAT HAPPENS NEXT?
net revenue market estimates currently
range from as low as $200m to over
$1bn and European operators have made
no secret as to their expectations from
establishing a brand in the state. 888 has
outlined ambitions to be in profit by the
end of 2014.
Far more will be known about New
Jersey in 2014 as the market matures. One
of the men responsible for getting the
market up and running, Senator Raymond
Lesniak, has already moved onto his
next challenge. He wants New Jersey to
become one of the world’s biggest online
gambling hubs by enabling state-licensed
operators to offer their online platforms to
players in jurisdictions outside
of the US.
WINNERS AND LOSERS
The decision by the New Jersey regulator
to delay PokerStars’ licence application for
two years will have pleased other operators
in the state. The clear early winners were
Caesars and bwin.party who shot out of the
blocks with aggressive marketing campaigns,
but with geolocation and payment issues
still remaining the true winners in this market
have yet to be decided.
44
03
888 HITS
THE BIG TIME
Gibraltar-licensed operator 888
posted an impressive performance
in its two core products and
became a major player in the
regulated US market
WHAT HAPPENED?
888 showed that not only could it
compete in Europe, but that it could be
a big player in the US with supplier deals
Despite success in Spain and the launch
of poker in Italy also expected by spring
of this year, the operator remains focused
on the UK market. Itai Pazner, 888’s senior
vice-president and head of B2C believes it
has taken the necessary steps to cope with
the impending PoC tax.
“It’s all about adapting the marketing
mix, adapting the cost per acquisition and
bonuses,” he says.
Moving into 2014, the operator has also
managed to carve out a strong position for
its B2B operations in New Jersey, in addition
to obtaining a licence in Nevada, where CEO
Brian Mattingley has already claimed it is
capable of gaining a huge slice of the pie.
Via its B2B arm Dragonfish, it has partnered
with Caesars Interactive Entertainment
(CIE), to launch online poker and casino
in the state, while also launching its own
branded site under one of Caesars’ licences.
A big push in its relatively
inconsequential UK sports betting site
has already begun, however time will tell
whether increased investment will lead to
success in that vertical.
WINNERS AND LOSERS
Poker and casino showed strong growth
in 2013, up 15% and 9% in the nine months
ended September, but bingo continued
to be a black spot, down 21% while B2B
revenues were down 1%.
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